Consumer products giant Gillette today said net income fell 29 per cent in the first quarter on lower sales and higher marketing and administrative costs.
Net income fell to $182 million, or 17 cents a share, in the quarter, down from $258 million, or 24 cents, a year ago.
Analysts on average had expected earnings in a range of 17 to 20 cents a share with a consensus of 19 cents, said market research firm Thomson Financial/First Call.
Sales fell 7 per cent to $1.76 billion, Gillette said. Unfavorable foreign exchange rates, notably in Europe and Asia, reduced net sales by 5 per cent, the company said.
The company said it expects to see improved performance in the second half of the year after developing plans to improve the company. Gillette said it had reduced substantial trade inventories that are hurting both the battery and razor and blade businesses.
Sales of Duracell batteries fell 14 per cent and profits fell 49 per cent from a year ago.
Razor and blade sales rose 1 per cent, but profits fell 13 per cent. Strong initial shipments of the new Gillette for Women Venus razor offset the lower volumes from the start of an aggressive program to reduce excess trade inventories of blades, the company said.